The real reason restaurants in Hungary are losing staff. Hint! It’s not money

Hungary has one of the highest hospitality turnover rates in the EU. And the restaurant industry has a running joke. Whenever someone quits, managers shrug it off and assume they got a euro more somewhere else. Comforting story, sure. It suggests turnover is inevitable, so yes, if someone offers you a euro more, you take it. 

But most staff don’t leave for better pay (don’t get me wrong, some of them do, but hardly the majority). They leave because stress piles up in ways no amount of tip money can cancel out. If there was an mp4 compressor for your feelings, all would be well and good. But who has that magic pill… 

Where’s The Poop? Not In The Kitchen

If pay were the main driver, turnover would look predictable. But that’s not what happens. What you see in the Hungarian hospitality business instead is churn that aligns almost perfectly with unpredictable schedules, unstable workloads, poor communication, and strained relationships with managers. 

Research backs this up: a major MIT Sloan study found that toxic or dysfunctional workplace cultures are over ten times more predictive of turnover than compensation. Ten times. Many restaurant employees juggle childcare, classes, or second jobs. When a schedule shifts three times in a single day,  people feel like their time is not valued.

People can put up with stress. What they can’t tolerate is ambiguity mixed with stress. That’s exactly what psychologists say about child-rearing. Even strict rules don’t ‘break’ your child as long as you’re consistent and predictable. (Just don’t go overboard, that’s not what we meant!). 

Staff Is The Head, Leadership Staff Is The NECK! 

Then there’s the enormous influence managers have on retention. Fairness, accountability, consistency, and emotional composure are critical standards to abide by. A manager who shows favoritism or routinely loses their temper drives staff to the exit faster than any pay dispute. 

Caution! Overwork Doesn’t Snooze. 

Another overlooked factor is overwork (excuse the pun). Chronic short-staffing creates a cycle where the most competent workers absorb the workload of those who quit. They can hold the restaurant (exactly like Hodor) for some time. Until they collapse under the pressure. Do the words ‘Billy, don’t be a hero’ mean anything to you?? Once burnout hits, the departure is almost guaranteed.

Water Your Staff. Or Something Like That…

Growth, or the lack thereof, also determines retention. Restaurants that encourage skill development create momentum. And momentum is one of the few things that can outweigh the daily grind. 

Working System = Happy Little Cogwheels

What’s important to understand is that all these issues such as scheduling, communication, management, overwork, stagnation, etc., are not “people problems.” They are system problems. Communication done through group chats, sticky notes, and verbal reminders will always create confusion.

Step #1. Implement system tools

Fixing the turnover problem is not about throwing money at employees. It’s about reducing operational friction so the job becomes sustainable. The first step is stabilizing the schedule. Publish it earlier. Keep it consistent. 

Clear SOPs (Standard Operating Procedures) are another anchor to run a restaurant. Instead of mysterious expectations, every rule should be written, accessible, and reinforced. 

Step #2. Train better managers

The second step is training managers not only in procedures but in leadership. Teaching managers how to give feedback, handle conflict, remain consistent, and recognize effort changes the emotional climate.

The challenge (and the opportunity btw) is that turnover isn’t a mystery. It’s a mirror. It always reflects the system behind it.

Read also: Hungary’s 2026 guest worker quota set – and many may be disappointed